Owing a home is a keystone of wealth – both financial affluence and emotional security
Are you ready to own your first home?
Great! I am sharing some tips and first home buyer benefits which could be useful to you.
Investing in your first home is a dream come true for many – hence it is a very important decision. If you are ready for it, jump right in by getting yourself a RERA registered and licensed real estate broker/agent. It’s important to remember that residential real estate is an appreciating asset. Waiting for a correction in the real estate market might just end up with you paying much more after a few years.
I am sure you have thoughts on your finances, job security, growth, etc. Hence you are budgeted. I’m assuming you have the down payment worked out as well as the tenure of the home loan and looked into house interest rates. Most developers and realtors in India have a tie-up with lenders, and the institution which will provide you with the loan has done its due diligence.
Amongst other things, you must think about your personal and health insurance – since if any unfortunate incident occurs, the EMI liability should not fall upon your family. Your salary takes care of the EMI. I hope you have considered and taken care of this important aspect.
What are the tips for first time home buyers?
Looking for a 2/3 BHK? If you are considering a 3 BHK which is within budget, then:
- Should I pay a little bit more for a 3.5 BHK?
– Future planning is very important.
– If you and your spouse are working, then think about getting 2 parking spots. You may be using a 2-wheeler today, but parking is an asset that appreciates over time and moreover, you might not get the car parking spots when you need them. Decades ago, cars were a luxury and there were some buildings in which the parking spots were less than the number of apartments – not even one car park per apartment. Keep this in mind and think about the future when looking up “new residential projects near me”.
- Connectivity to schools, markets, and hospitals nearby and distance to your workplace
– Travel time to your workplace is very important to consider.
- What amenities are offered by the developer?
- Check if the place has a rental potential just in case you are transferred
- Check your society’s monthly outgoings before booking
– Add this to your monthly expense. Also, budget for property tax once a year.
- Choose a good real estate agent/consultant
– And work out which project suits you – keeping in mind all the factors.
There are various advertisements in newspapers and digital media with deals on real estate. Do connect with a licensed real estate broker/agent through referrals. Speak to the agent openly and find out if the agent has your best interest in mind. Check if he is not taking any brokerage from you for the new property.
The agent must have your best interests in mind. The agent should get you the best deal possible. The developer pays brokerage for any new property. Remember brokerage is the agent’s remuneration for their support and is the marketing cost of the developer. What you save on the deal is because of your agent. Due diligence is most important as is asking the right questions at the beginning before you sign off – especially regarding bank interest rates etc.
Life Inspiration Advisory LLP
Disclaimer: These are my opinion and views. My advice to you is to do your own due diligence.